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I'll repeat the question member louishen asked.... which virtual software are you using to install Win 98SE? You can't install it via Boot Camp or any other way. VMWare Fusion, Parallels, or the free VirtualBox have to be used to run 98SE. And yes, you can install it via an iso but it depends on which virtual software you're using.

Sorry about that.... too early in the AM I guess. But next time spell it out instead of using PD.

Parallels latest version is 8.0 by the way, however version 7 should work OK. You're going to need to mount the iso direct in Parallels and not from a virtual drive. Parallels will easily load Windows XP, Vista, and Windows 7 that way and I have no reason to think it would not do the same with the 98SE iso as long as it's bootable.

I've never attempted to run anything earlier than XP in a virtual machine so the procedure may be a bit different. Anyway, if the iso doesn't mount or refuses to install, go on over to the Parallels users forums and check out their knowledge base or ask one of their members. LINK

I'm using a trial version, and unless I get this working I'm unlikely to pay the full fee. As I understand it, the Parallels forums aren't open to trial users - only fully licensed users - which is why I posted this issue here.

The Parallels forums are open to anyone. You can't get technical support when you're using a trial version, however, you can certainly get on their forums. Now, having said that, I'm not sure that you can load an iso or even setup a virtual machine with the trial version, otherwise why buy the license? And again as I stated before, Parallels 7 is not the current version, 8.0 is.

I'm using a trial version, and unless I get this working I'm unlikely to pay the full fee. As I understand it, the Parallels forums aren't open to trial users - only fully licensed users - which is why I posted this issue here.

It's free & for more "obscure" OSes like the one you're trying to install there's probably more support from the Free & Open Source Software community than you'll ever find from the companies that make Parallels or VMware.

For my purposes as an engineering graduate; Windows is respectable (& generally necessary), Linux is admirable (& often useful), OS X is enjoyable (& requires no further justification, although plenty could be given)!